Bond yields continue to tumble

By Wealth Trust Securities

The buying interest across the yield curve, consisting of the maturities of two 2023’s (15.03.23 & 15.07.23), 15.03.24, 15.01.27, 01.09.28 and 01.05.29, led to its yields decreasing to intraday lows of 10.30%, 10.32%, 10.35%, 10.68%, 10.71% and 10.81% respectively, against its previous days closings of 10.35/40, 10.38/45, 10.42/48, 10.73/77, 10.80/85 and 10.85/90. In addition, the 01.10.22 and 01.08.26 maturities were seen changing hands within the range of 10.12% to 10.17% and 10.68% to 10.69% as well.

The total secondary market Treasury bond/bill transacted volumes for 15 May was Rs. 7.45 billion. 

In money markets, the Open Market Operations (OMO) Department of Central Bank continued to drain out liquidity by way of overnight, five days, six days and ten days repo auctions at weighted averages ranging from 8.50% to 8.59% as the overnight net surplus liquidity in the system stood at Rs. 20.32 billion yesterday. The overnight call money and repo rates averaged 8.40% and 8.50% respectively.

 Rupee appreciates for second consecutive day 

In Forex markets, the continued selling interest by the banks saw the USD/LKR rate on spot contracts appreciating further for a second consecutive day, to close the day at levels of Rs. 176.00/10 against its previous day’s closing levels of Rs. 176.20/30.

The total USD/LKR traded volume for 15 May was $ 70.75 million.

Some of the forward USD/LKR rates that prevailed in the market were 1 month - 176.85/05; 3 months - 178.65/85 and 6 months - 181.30/60.